Burnham To Ban Subscription Traps and Misleading 'Pretend Prices' in Efforts To Ease Cost of Living

Prime Minister Andy Burnham is bringing forward measures to tackle subscription traps and misleading 'pretend prices', with the government promising new consumer protections by January 2027 as part of its wider cost-of-living efforts.

The plans, announced by Burnham while he begins a tour of the UK to hear directly from voters, were originally unveiled under his predecessor Sir Keir Starmer in April. Burnham's government is now accelerating their implementation, saying the measures are intended to give households 'some room to breathe' as pressure on everyday spending continues.

Burnham Targets Subscription Traps

Under the proposed changes, companies will have to make subscription terms clearer from the outset, remind customers before contracts renew and provide a simpler way to cancel unwanted services.

The government is particularly targeting arrangements in which customers sign up for free or discounted trials before being moved into more expensive contracts, as well as subscriptions that automatically renew without customers fully realising what will happen.

The rules were previously expected to come into force next spring. Burnham's government has now promised implementation by January 2027.

When the plans were first announced, the government estimated they could save consumers £400 million a year in total, equivalent to as much as £170 per person. The Department for Business and Trade also said there were 10 million unwanted active subscriptions across the UK.

It estimated that more than 3.5 million people were being 'quietly rolled' from free or discounted trials into fully priced contracts, while another 1.3 million were being caught by unexpected auto-renewals.

Burnham said he wanted to use every available measure to reduce the pressure facing households.

'I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living,' the prime minister said.

The proposals are part of a wider series of measures Burnham has described as 'everyday fixes'. He has already announced a £2 cap on bus fares in England and a cut to VAT on household electricity bills.

Consumer group Which? welcomed the latest announcement. Sue Davies, its head of consumer rights policy, said the organisation had repeatedly exposed businesses, including well-known household brands, over deals it said were misleading.

She called for the new rules to be introduced 'swiftly'.

'Pretend Prices' Also Face a Crackdown

Burnham is also targeting the way retailers advertise discounts, with the government planning to tackle what it calls 'pretend prices'.

The proposed measures would address the use of 'was' prices, made-up discounts and misleading recommended retail prices to make offers appear better value than they actually are.

The government plans to launch a consultation in the autumn to determine how the new rules should be implemented.

Some protections already exist. It is unlawful for retailers to use false 'was' prices for items advertised as being on sale. However, such practices are not currently included on the Competition and Markets Authority's list of automatically banned practices.

The consumer protection framework was strengthened under the Digital Markets, Competition and Consumer Act, which was passed by the previous Conservative government in 2024. The legislation also addressed hidden fees and fake online reviews and made it easier for consumers to cancel certain subscriptions.

The Conservatives have nevertheless criticised Burnham for bringing forward measures that were originally announced under Labour's previous government.

Shadow chancellor Mel Stride described the plans as 'reheated' and accused the prime minister of having 'already run out of ideas'. He questioned why the legislation had taken so long to advance, arguing that the cost-of-living crisis did not begin with Burnham's government.

The Liberal Democrats have also called for the government to go further. Treasury spokesperson Daisy Cooper urged stronger protections against rogue traders and action over 'shrinkflation', where products become smaller while remaining at the same price.

Burnham is expected to face further pressure over the cost of living ahead of the Budget, which Chancellor John Healey is due to deliver on 28 October. Healey has pledged 'strong fiscal discipline', potentially limiting the scope for more expensive interventions.

For now, the government is focusing on changes that it says can make everyday consumer decisions clearer, with the subscription reforms expected to arrive by January 2027 and the consultation on 'pretend prices' due to begin this autumn.